Tereos raises sugar beet prices by 40%
France’s biggest sugar and ethanol group, Tereos, has raised the price at which it will buy sugar beets from its cooperative members by 40% from last year, in a bid to to pass on the improvement in its results in a context of soaring European sugar markets.
t is reported by Reuters.
In a letter sent Tuesday to its 12,000 cooperators, Tereos indicated that it would pay for the 2022 harvest 41.85 euros ($40.88), premium included, per tonne of sugar beet on the basis of a sugar content of 16 degrees, against 29.90 euros last season. .
The price increase is exclusively linked to the improvement in the industrial and commercial performance of Tereos’ French sugar unit, he said, adding that it had recorded a significant increase in its average selling price compared to 2021.
Tereos had previously said it would do “at least as much” as its competitors in France. Cristal Union and Suedzucker’s (SZUG.DE) branch in France, Saint-Louis Sucre, announced prices of 35 euros and 35.50 euros per ton respectively.
Tereos is the world’s second largest producer of sugar by volume thanks to its sugar cane activities in Brazil.
European sugar prices are trading at record highs, nearly three times the levels seen a year ago following extreme weather and soaring energy costs, which has sparked concern of the bakery and confectionery industry.
The sugar beet harvest is in full swing in France but shows disappointing results after a severe drought which hampered crop development. Earlier this month, the Department of Agriculture said it expected the national yield to fall by 6% from the five-year average.
Tereos said it expects yields close to the five-year average, albeit with mixed results, and to record an average sugar content of 18.2%.